{"id":332146,"date":"2025-04-08T00:26:00","date_gmt":"2025-04-07T16:26:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332146"},"modified":"2025-04-08T00:26:00","modified_gmt":"2025-04-07T16:26:00","slug":"stock-in-focus-converge-ict-cnvrg-8-april-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-converge-ict-cnvrg-8-april-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Converge ICT (CNVRG) – 8 April 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>CNVRG<\/td><\/tr>
Company Name<\/strong><\/td>Converge ICT Solutions Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>8 April 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 24.85<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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As we see it, the establishment of a separate entity can allow CNVRG to focus on core operations of offering fiber and solutions services while its strategic partner shares the burden of infrastructure maintenance, capital expenditures, and operational expenses, while pursuing potential network sharing agreements with other telcos. While this is still far from being a done deal, the company\u2019s innovative approach and the potential for greater visibility on the valuation of its fiber network adds to our conviction in our BUY rating on CNVRG with a Target Price of P24.85\/share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

CNVRG considers carving out fiber business<\/strong><\/p>\n\n\n\n

Since 2022, CNVRG has been considering a potential sale of a minority stake in its fiber infrastructure platform, as it carefully evaluates its strategies to further maximize its port utilization. CNVRG is looking into sharing its fiber network with other telcos, with its CEO looking at a potential network sharing scheme with TEL and GLO to accelerate connectivity among Filipinos. As of 4Q24, fiber port utilization was at 31.1% after several quarter of incremental improvement. <\/p>\n\n\n\n

$1-bn for a 40% stake in fiber network? <\/strong><\/p>\n\n\n\n

The potential sale of a 40% stake in CNVRG\u2019s fiber network was reported by Bloomberg News to be valued at $1-Billion. However, deliberations are still ongoing and a sale is still far from being a done deal, as indicated in the report.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>